3 Defensive Stocks Analysts Are Bullish on to Kick Off the Year

Core Viewpoint - Defensive stocks, particularly in the consumer staples sector, are gaining attention as analysts upgrade their ratings and price targets, indicating potential for significant portfolio benefits in 2025 [1] Group 1: Walmart - Walmart has received upgrades from Wells Fargo and Barclays, with price targets raised to $100 and $98 respectively, implying approximately 9% upside [2] - The stock has appreciated nearly 71% over the past year, with a moderate buy rating and a projected earnings growth of 10.53% [3][4] - Walmart's e-commerce sales grew by 22% last quarter, contributing to 55% of the company's overall U.S. comparable sales growth [5] Group 2: Coca-Cola - Coca-Cola has been upgraded by TD Cowen from Hold to Buy, with a price target set at $75, indicating an implied upside of nearly 18% [6][8] - The company offers a solid dividend yield of 3.1%, significantly above the S&P 500 Index's yield of around 1.2% [8] - Coca-Cola maintains a low five-year monthly beta of 0.62, suggesting stability during market downturns [8] Group 3: McCormick - McCormick received a buy rating from TD Cowen, with its price target increased from $86 to $90, implying over 25% upside potential [9] - The company has a solid dividend yield of 2.5% and a projected earnings growth of 6.51% [10] - McCormick's "heat" products, such as hot sauce and spicy seasonings, are expected to grow three times faster than non-heat products, driving future growth [11]